Phreesia (PHR) Q1 2026 earnings summary

Executive summary

• Revenue grew 15% year-over-year to $115.9 million for Q1 FY2026, with strong client and per-client revenue growth across all streams.

• Adjusted EBITDA rose to $20.8 million, up from $4.1 million year-over-year, with margin improving to 18%.

• Net loss narrowed to $3.9 million from $19.7 million in the prior year quarter, an 80% improvement.

• Free cash flow turned positive at $7.5 million, compared to negative $6.2 million in the prior year, marking four consecutive quarters of positive free cash flow.

• Cash and cash equivalents increased to $90.9 million as of April 30, 2025.

Financial highlights

• Total revenue per average healthcare services client (AHSC) rose 6% year-over-year to $26,283, with AHSCs increasing to 4,411.

• Subscription and related services revenue grew 16% year-over-year to $54.4 million.

• Payment processing fees increased 11% to $29.9 million; network solutions revenue rose 15% to $31.7 million.

• Operating cash flow was $14.9 million, up $15.6 million year-over-year.

• Cost of revenue (excluding D&A) increased 6% to $16.6 million; sales and marketing expense decreased 19% to $26.0 million.

Outlook and guidance

• FY2026 revenue guidance maintained at $472–$482 million.

• Adjusted EBITDA guidance raised to $85–$90 million, up from prior $78–$88 million.

• AHSCs expected to reach approximately 4,500 in FY2026, with revenue per client projected to increase.

• Sufficient liquidity and no outstanding borrowings under the credit facility as of April 30, 2025.

• Management believes existing cash and cash generated from operations are sufficient to fund operations for at least the next 12 months.